Thanks for your bugreport.
it looks like it can not open your X display for some reason. Is your X
(graphical environment) running ok? Is update-manager the only app that has
those problems? What is the output of:
$ env | egrep '(DISPLAY|XAUTH)'
on a terminal window?
Thanks,
Michael
** Changed in: update-manager (Ubuntu)
Status: New => Incomplete
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Distribution upgrade 7.10 -> 8.04rc still does not work
https://bugs.launchpad.net/bugs/220716
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